According to ChainCatcher news, as reported by Jin10, Derek Halpenny, the head of forex research at Mitsubishi UFJ, pointed out that the US dollar may continue to depreciate in 2026, but the decline will be more moderate than this year. He emphasized that the dollar has peaked and is at the beginning of a multi-year downtrend. The dollar index is expected to fall by about 5% in 2026, which aligns with the outlook for the euro to rise to 1.24 against the dollar. The main factor driving the dollar's weakness is the divergence in monetary policy: the Fed is expected to implement three to four more rate cuts in 2026, while the European Central Bank may keep interest rates unchanged.
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Mitsubishi UFJ: Expects the US dollar to continue weakening by about 5% in 2026
According to ChainCatcher news, as reported by Jin10, Derek Halpenny, the head of forex research at Mitsubishi UFJ, pointed out that the US dollar may continue to depreciate in 2026, but the decline will be more moderate than this year. He emphasized that the dollar has peaked and is at the beginning of a multi-year downtrend. The dollar index is expected to fall by about 5% in 2026, which aligns with the outlook for the euro to rise to 1.24 against the dollar. The main factor driving the dollar's weakness is the divergence in monetary policy: the Fed is expected to implement three to four more rate cuts in 2026, while the European Central Bank may keep interest rates unchanged.